Expert Reveals Amazing Tips For Procurement And Inventory Management

Inventory ManagementMost companies engage in procument of materials, services as well as inventory management. For this reason, purchasing function has become very important in every corporation. The goods procured should be put in the rightful place so that customers can easily access them.

According to Shruti Agrawal, a senior strategist and electronic engineer by profession, companies should engage in efforts aimed at reducing procurement costs so as to increase business productivity. This can be achieved by using an effective procumemt model which encourages negotiations with the supplier. It will enable procurement officers reach deals at a cost friendly price so that the company does not spend a lot of money.

Companies are also encouraged to employ the best sourcing agents and then train them so that they can excellently assess supplier risk. Training will also enable them to accurately predict future expenditure. This can also be achieved by automation of procurement activities. He also emphasised on the need to ensure that transparency and accountability is adhehered to. Shruti suggested that a standard procedure of operations should be put in place. It should feature a framework that requires approval of different people to prevent malpractices.

Employers were also advised to reward hardworking sourcing agents.

This encourages them to worker harder. They also feel appreciated and motivated. Such agents should also be publicised to the wider market. By so doing, chances are that they will be transformed from mere sourcing agents to change agents. It is important that the sourcing team works closely with organizational departments such as operations and finance. It will make it easy to set and align financial targets. It will also help to save when such opportunities arise. This will immensely improve business performance.

It is also important to implement a centralized inventory management system. Shruti Agrawal said that it helps sourcing agents to track performance data. This information will help to study all the savings that have been realized. He added that it will set a benchmark for every vendor that has been contracted by the company.

A good inventory management system should enable sourcing agencies to confirm the receipt of orders. In additioon, it should allow them check the quality of various consignmemts. Furthermore, the system should help to ensure that the right quantity of goods or equipment ordered is received. This will prevent losses especially when the amount spent in making orders is high but the quantity of goods delivered is less the number that was ordered.

On top of that, when a centralized inventory management system is implemented,sourcing agents will be able to deliver consignments to the appropriate destinations.Last but not the least, it will enable them to verify ducuments and ensure that everything is in order.

According to Agrawal, corporations should evaluate supplier performance. This should be done based on the ability to deliver the right quantity and quality of goods within the specified timeframe. However, it is important to note that issues may arise in the transportation process and this may negatively affect supplier performance and the entire procurement process.

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